ARA Asset Management, owner of ARA US Hospitality Trust : XZL 0%’s (ARA H-Trust) sponsor, has agreed to sell the trust’s managers to Acrophyte Asset Management, an entity wholly owned by property tycoon Gordon Tang and his wife Celine, the trust’s managers announced on Monday (May 27).
Stapled group ARA H-Trust comprises ARA US Hospitality Property Trust, which is managed by ARA Trust Management, and ARA US Hospitality Management Trust, which has a trustee-manager called ARA Business Trust Management (USH).
Acrophyte Asset Management intends to acquire all 1.5 million shares in the capital of ARA Trust Management and all 50,000 shares in the capital of USH.
Acrophyte Asset Management will then become the stapled group’s new sponsor.
In addition, ARA H-Trust’s sponsor, ARA Real Estate Investors 23, is proposing to sell 110.2 million stapled securities of the trust to Acrophyte Limited, an entity wholly owned by Tang Jialei and Tang Jialin, the children of Gordon and Celine Tang.
This translates to a 19 per cent stake in ARA-H Trust. The purchase increases the Tangs’ holding in ARA H-Trust to 28.3 per cent.
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Acrophyte has been a prominent real estate player since the 1990s, noted ARA H-Trust’s managers in a presentation deck. The proposed transaction marks Acrophyte’s first venture into Reit management.
Acrophyte is affiliated with real estate player SingHaiyi, which was formerly listed on the Singapore Exchange. In 2023, Gordon and Celine Tang took construction and property group Chip Eng Seng Corporation private.
ARA H-Trust’s managers said the proposed transactions are estimated to be completed in the second to third quarter of 2024, subject to the fulfilment of certain conditions precedent.
Lee Jin Yong will remain as chief executive of the managers following the proposed transactions, the managers said.
Stapled securities of ARA H-Trust closed down 1.8 per cent or US$0.005 to US$0.28 on Monday, before the announcement.
